Refunds and the "Return of Title IV Funds" Policy

When a student withdraws or is expelled from school and has been awarded federal financial aid, per federal law, a portion of that awarded aid may be required to be returned. The amount to be re turned may come from the in stitution, the student, or a combination of the two. To determine who is re sponsible to return the funds to the federal government, two calculations are necessary.

Calculation 1:

First, per the "Return of Title IV funds" formula dictated by the federal government, the Financial Aid Office will calcula te the amount of financial aid awarded to the student that must be returned to the federal government by the institution and the student, if the student withdraws prior to completing 60% of the term. The federal formula is applicable to a student receiving a TIP grant, Pell grant, SEOG, Perkins Loan, Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans. The percentage of Title IV aid to be returned is equal to the numb er of calendar days remaining in the semester divided by the number of calendar days in the semester. Sche duled breaks of more than four consecutive days are excluded. Once this calculation ha s been performed, the Financial Aid Office will notify the Cashier Office of the amount the institution and /or student is required to return to the Title IV financial aid programs.

Calculation 2:

The Cashier Office will then calculate the re fund of institutional charges due the student per the University of Wisconsin re fund policy mandated by the State. Financial aid recipients are encouraged to contact the Financial Aid Office to be advised of the impact of withdrawing from the uni versity prior to initiating the process.